| Open Europe |
Europe
Farmers for No campaign: Ireland's EU voting weight will 'diminish' under Lisbon Treaty;
Czech Senators' legal challenge set to delay ratification
Speaking at the launch of the 'Farmers for No' campaign in Ireland yesterday, Chairman James Reynolds said that, under the Lisbon Treaty, "Our voting-weight as a member-state diminishes from 2 per cent, as it currently is under the Nice Treaty rules, to 0.8 per cent." He said that the Treaty also promoted "the culture of hyper-regulation from Brussels," the Irish Times reports.
He added that, "European Commission proposals on inheritance law would prevent farmers passing on family farms as a single working unit; that's unacceptable...and the danger is, if the Lisbon Treaty is ratified, that will come into effect." Under the Lisbon Treaty Ireland stands to lose 40 percent of its power to block legislation it disagrees with.
The Irish Independent reports that US multinational Intel is planning to spend a six-figure sum on campaigning for a 'Yes' vote in the second referendum on 2 October. Intel Ireland General Manager Jim O'Hara said that Intel would be spending "a few hundred thousand euros" on its publicity campaign for Lisbon.
Meanwhile, Prague Monitor reports that Czech Minister for European Affairs Stefan Fuele is concerned about a group of ODS party Senators' intention to file a complaint with the Constitutional Court against amendments to a Czech law connected with the Lisbon Treaty. The 'special mandate' prevents the Czech government from approving transfer of powers to the EU without the parliament's agreement but the Senators say the law's provisions are not sufficient. Fuele has expressed his fear that the ratification of the Lisbon Treaty would be further delayed by the move.
Irish Times Irish Independent Irish Independent 2 Irish Times 2 Irish Times 3 Irish Times 4 Prague Monitor The Parliament
German MEP: EU's AIFM Directive needs to be amended
French MEP Jean-Paul Gauzès to be the rapporteur for the Directive?
German newspaper Handelsblatt reports that there is massive opposition within the German private equity sector towards the planned EU directive on hedge funds and private equity, and that the opposition is beginning to pick up among MEPs as well.
MEP Burkhard Balz from the CDU is quoted in the article saying, "Several planned regulations are not applicable to private equity", arguing that the Directive must be amended so as to differentiate between private equity companies, which are restricted in their investments, and hedge funds, which can invest in all sorts of assets and instruments. The draft Directive foresees for instance that the portfolio of each fund is assessed by an independent valuator once a year in order to protect investors. However, Balz argues that "this yearly evaluation does not provide benefits for investors of private equity". He also criticises the draft directive for putting non-EU managers at a disadvantage, by only allowing EU-based manager to market their funds to European investors.
The article also reports that the German Federal Association of Private Equity Firms (BVK) has said that 6200 middle-sized companies, involving some €200 billion, are mostly financed by private equity capital. These companies employ 1.2 million people. According to the article, the BVK is in favour of EU-wide rules but argues that the current proposal is unworkable. BVK Director Dörte Höppner is quoted saying that the Directive "would destroy our business model".
According to the article, the European Parliament will start debating the draft directive at the beginning of September. An official first reading in the EP is scheduled for 24 November, and the Council of Ministers will look at it on 10 November. Handelsblatt has tipped French MEP Jean-Paul Gauzès of the UMP to be the rapporteur for the EP.
Meanwhile on a Reuters blog, head of hedge fund industry organisation AIMA, Andrew Baker, warns that the EU's proposed Directive on alternative investment funds may have a negative impact on investors and markets across Europe. He argues, "many Eastern Europe countries in particular do not have domestic hedge fund industries but they do all have major commercial real estate sectors - the construction of office blocks, residential housing, supermarkets and warehouses. Investment in these projects is usually from international real estate funds which [...] would be hit by the directive."
Guardian Reuters blog Handelsblatt Open Europe blog
Commission developing strategy to impose road tolls across Europe
The Newcastle Journal reports that the EU could force the introduction of road tolls across Europe as part of the long-term transport strategy currently being developed by the European Commission. Open Europe Director Lorraine Mullally is quoted saying, "If Ireland votes Yes to the Lisbon Treaty in its second referendum in early October, the UK Government will lose its ability to veto any proposals it doesn't like the sound of [in transport policy]. Congestion charges and road tolls should be decided regionally or locally and as close as possible to the people who will have to pay them, not by the unelected European Commission in Brussels."
Lord Howell: The key to EU success in the world "is an appreciation of the limitations of an EU common foreign policy"
In an article for Europe's World, David Howell, Former Minister and Shadow Deputy Leader of the Lords, argues that "Europe can come together and act effectively on specific and well-defined issues, but not on everything. It cannot substitute for the growing mesh of bilateral relations which the information age has created. Nor can it live within a legislative or treaty-determined straightjacket. That is why so many good and sincere Europeans nevertheless feel uncomfortable with the Lisbon treaty's aspirations, which claim not to touch foreign policy matters and yet clearly point in the direction of a single European voice and an EU Foreign Minister in all but name."
"Behind this realism there lies what is perhaps the most difficult issue of all for European strategists to accept. It is that there is neither a settled world nor a settled and 'complete' EU to be positioned within it. Euro-enthusiasts like to talk about an ultimate end-point for European integration, a 'solution' or goal, with movement towards which constituting 'progress'. But this concept is both intellectually and philosophically flawed...The key for this restless Union to operate effectively on a treacherous world stage is an appreciation of the limitations of an EU common foreign policy, and an equal wariness of over-ambition as a potentially fatal disintegrating force."
German law professor: The success of the EU should not be measured by the number of its competences
Sueddeutsche Zeitung features the comments of German law professor Frank Schorkopf regarding the Lisbon Treaty judgement of the German Constitutional Court. Schorkopf says that the judgement may come as a wake-up call alerting people to the fact that more EU competencies does not necessarily correlate to the success of the EU. He argues that a lot of problems have to be solved collectively, but not all. He added that the European Parliament does not stand up to the core principles of political governance: "That's why Karlsruhe said, that there have to be decisions which can only be made on the national level."
He said, "Year after year, significant legal acts are decided on the European level, which have an impact on the rights and liberties of the citizens. How long shall we wait until the threshold of real democratic legitimacy is crossed?"
No link
German CSU party insists on stronger rights for German parliament in EU affairs despite grand coalition agreement
FAZ reports that the Bavarian CSU party is still pushing for stronger parliamentary rights in EU decision making, despite an agreement reached between partners of the governing 'grand coalition' this week. The CSU is especially keen to enforce two specific points: firstly, the CSU is demanding a resolution which would mean that the ratification of the Lisbon Treaty is only valid in the framework of judgments made by the German Constitutional Court. Secondly, they are insisting that the Bundestag and Bundesrat should be able to file a complaint to the Constitutional Court, based on a two-thirds majority vote, in cases where they consider the EU to have exceeded its competences.
Handelsblatt FAZ Tagesspiegel TAZ Freie Welt
Mandelson attacks Merkel over General Motors sell-off
The Mail reports that UK Business Secretary Peter Mandelson has accused German Chancellor Angela Merkel of attempting to distort the sell-off of General Motors' European arm in Germany's favour. Germany has favoured a bid by Magna, a Canadian car-parts group which has given guarantees over the future of German factories, over a rival bid by Belgian finance firm RHJ International. The paper reports that Merkel has pledged almost £4 billion in state aid for Opel if it is taken over by Magna, whilst Mandelson views the RHJ bid as a better option for Britain's factories and workers. Mandelson said, "This decision, above all, needs to secure the long term viability of both Opel and Vauxhall in the UK and should not be distorted by political considerations in any one country."
The Economist: Is a two-speed eurozone developing?
The Economist reports on the differences in eurozone countries' experience of the recession and questions whether a two-speed eurozone is developing. The article notes that whilst the eurozone's two largest economies, France and Germany, recently emerged from the recession by reporting growth of 0.3%, other economies, such as Spain and Italy, were still shrinking. It states that a north-south analysis of the situation is overly simplistic, as some northern economies, such as Belgium, Austria and the Netherlands were still shrinking, whilst Portugal and Greece had experienced growth.
Swedish MP: Sweden should use its Presidency to halt EU protectionism
Carl B Hamilton, a Swedish MP, argues today in Swedish daily DN that Sweden should use the EU Presidency to promote free trade and prevent protectionism. He notes that the EU has introduced an anti-dumping toll amounting to a staggering 85 percent on nuts and bolts. The normal toll is usually around 3-6 percent. China, the largest exporter of nuts and bolts to the EU, has lodged a complaint to the WTO. He argues that Sweden should welcome a WTO ruling in China's favour and seek to prevent further protectionism within the EU.
Nils Pratley: Lloyds' U-turn on C&G closures prompted by fear of European Commission's competition rules
In the Guardian, Financial Editor Nils Pratley looks at Lloyds' decision to reverse its strategy of closing Cheltenham & Gloucester's branch network. Pratley notes that "We are left with the natural interpretation: fearing intervention on competition grounds from the European commission, Lloyds has decided that it ought to keep open a part of its empire that would be easy to sell to a rival."
The Baltic region's troubles still look severe despite signs that the economic downturn is softening, according to the head of Sweden's financial regulator Martin Andersson.
Posts
